Secure business prospects in China for foreign investors

Mpho Mokwape | Friday October 20, 2017 15:04

Accordingly the investors are assured to be treated equally with their Chinese counterparts, as all businesses registered in the country will be treated equally, something inspired by China’s need to pursue openness and expand foreign trade.

This was announced by the country’s President Xi Jinping during the official opening of his party’s national congress explaining that the country, with the desire to open up will adopt policies to promote standard liberation and facilitation of trade and investment, implement the system of pre establishment national treatment to foreign investors.

“We will expand trade, develop new models, new forms and turn China into a trader of equality. We will implement the system of pre establishment national treatment plus a negative list across the board, significantly market access, further open the service sector and protect the legitimate rights and interests of foreign investors,” he said.

Xi explained that the intention was to improve the balance in opening different regions and open the western region wider in order to grant more powers to pilot free trade zones to conduct reform, and explore the opening of free trade ports.

He maintained that they will also develop new ways of making outbound investments, promote international cooperation on production capacity, form globally oriented networks of trade, investment and financing, production and services to build up strength for international economic cooperation and competition. “Unlocking and developing the productive forces is a fundamental task of socialism. We must inspire creativity and vitality throughout society and strive to achieve better quality, more efficient, fair and more sustainable development,” he said.

Xi shared that the desire to expand trade was due to making of new ground in pursuing opening up on all fronts, emphasising that openness brought progress while self seclusion leaves one behind in that China will not close its doors to the world, as it intends to become more open.

He pointed out that the “Belt and Road” initiative was set up as a priority to increase global interaction therefore it should be pursued as a priority too giving equal emphasis to ‘bringing in’ and ‘going global’ following the principle of achieving shared growth through discussions, collaboration, increased openness and cooperation in building innovation capacity.

“With these efforts we hope to make new ground in opening China further through links running eastward and westward across land and sea,” he said.

Meanwhile the 19th National Congress of the Communist Party of China is taking place in Beijing and will end on Tuesday. It is expected to deliberate on what China has achieved in the past five years and map a way forward for new goals both which are focused on the development and contribution to the global economy and security. Under the leadership of Xi the country has reportedly seen growth both economically and socially becoming the second largest economy in the world. The national congress takes place every five years.